As the cost of living continues to increase, new figures reveal that up to 65% of Brits have suffered a pay freeze in recent years.
New research from uSwitch states that only three out of ten UK workers are expecting their pay to rise in 2012. Data reveals that it will only rise by 2.1% on average, which is half of the current rate of inflation.
65% of Brits have suffered recent pay freezes and up to 15% haven’t had a pay rise for the past three years.
“After a difficult 2011 which saw the cost of living rocket, savings rates stuck at rock bottom and pay frozen, Brits are preparing themselves for another tough year. Further pay freezes in 2012 could push many consumers over the edge,” said Michael Ossei, Personal Finance expert at uSwitch.com.
Increasing bills, decreasing disposable income
The freeze in British workers’ income comes along with rising living costs. With a 5.9% hike in rail fares and last year’s 21% increase in energy bills, a number of struggling Brits are facing problems to cope with their daily expenses.
A majority (54%) of those who expect their pay to be frozen are already worried about how they will deal with this financial reality. 15% still don’t know how to obtain extra cash, while 20% will work more hours or take a second job.
“In the face of another tough year, those who plan to severely rein in their spending have hit the nail on the head – this year more than ever people will have to watch their spending and cut back where they can. Consumers can give themselves a pay rise by shopping around for the best deals on their household bills – which could save you over £1,800” added Ossei.
Making cutbacks and budgeting is the most effective way to manage your expenses. Unfortunately, however, budgeting is not always enough. Unsecured loans are available to give you access to the funds you may require.
As with any form of borrowing, it is important to ensure that you are able to meet repayments and fully understand the terms and conditions attached to your loan.